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Qingdao Richen Food Co., Ltd.

  • Market Cap: Small Cap
  • Industry: FMCG
  • ISIN: CNE100003PD1
  • SHG: 603755
CNY
24.38
-1.77 (-6.77%)

Sep 22

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Qingdao Richen Food Co., Ltd.

Why is Qingdao Richen Food Co., Ltd. ?

1
Poor Management Efficiency with a low ROCE of 14.15%
  • The company has been able to generate a Return on Capital Employed (avg) of 14.15% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
  • Poor long term growth as Net Sales has grown by an annual rate of 11.59% and Operating profit at 5.15% over the last 5 years
  • The company is Net-Debt Free
  • The company has been able to generate a Return on Equity (avg) of 9.86% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 11.59% and Operating profit at 5.15% over the last 5 years
4
With a fall in Net Sales of -11.29%, the company declared Very Negative results in Jun 26
  • The company has declared negative results for the last 2 consecutive quarters
  • The company has declared negative results in Mar 26 after 3 consecutive negative quarters
  • DEBT-EQUITY RATIO (HY) Highest at 55.48 %
  • INTEREST COVERAGE RATIO(Q) Lowest at 938.86
  • RAW MATERIAL COST(Y) Grown by 7.22% (YoY)
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Qingdao Richen Food Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Qingdao Richen Food Co., Ltd. for you?

High Risk, Medium Return

Absolute
Risk Adjusted
Volatility
Qingdao Richen Food Co., Ltd.
-100.0%
-0.04
40.48%
China Shanghai Composite
3.23%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
11.59%
EBIT Growth (5y)
5.15%
EBIT to Interest (avg)
19.87
Debt to EBITDA (avg)
0.92
Net Debt to Equity (avg)
0.11
Sales to Capital Employed (avg)
0.44
Tax Ratio
12.43%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.00%
ROE (avg)
9.86%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
3.00
EV to EBIT
27.22
EV to EBITDA
24.81
EV to Capital Employed
2.29
EV to Sales
5.47
PEG Ratio
1.13
Dividend Yield
2.17%
ROCE (Latest)
8.41%
ROE (Latest)
11.16%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 111.22 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 10.61 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 173.46%

-27What is not working for the Company
DEBT-EQUITY RATIO (HY)

Highest at 55.48 %

INTEREST COVERAGE RATIO(Q)

Lowest at 938.86

RAW MATERIAL COST(Y)

Grown by 7.22% (YoY

CASH AND EQV(HY)

Lowest at CNY 104.45 MM

NET SALES(Q)

At CNY 111.29 MM has Fallen at -9.59%

INTEREST(Q)

Highest at CNY 2.36 MM

OPERATING PROFIT(Q)

Lowest at CNY 22.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.92 %

PRE-TAX PROFIT(Q)

Lowest at CNY 14.27 MM

NET PROFIT(Q)

Lowest at CNY 11.21 MM

EPS(Q)

Lowest at CNY 0.12

Here's what is working for Qingdao Richen Food Co., Ltd.

Operating Cash Flow
Highest at CNY 111.22 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio
Highest at 10.61 times and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio
Highest at 173.46%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Qingdao Richen Food Co., Ltd.

Interest
At CNY 2.36 MM has Grown at 10.6%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio
Lowest at 938.86
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit
At CNY 14.27 MM has Fallen at -41.86%
over average net sales of the previous four periods of CNY 24.54 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit
At CNY 11.21 MM has Fallen at -47.09%
over average net sales of the previous four periods of CNY 21.19 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio
Highest at 55.48 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales
At CNY 111.29 MM has Fallen at -9.59%
over average net sales of the previous four periods of CNY 123.09 MM
MOJO Watch
Near term sales trend is negative

Net Sales (CNY MM)

Interest
Highest at CNY 2.36 MM
in the last five periods and Increased by 10.6% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit
Lowest at CNY 22.17 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin
Lowest at 19.92 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at CNY 14.27 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit
Lowest at CNY 11.21 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS
Lowest at CNY 0.12
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv
Lowest at CNY 104.45 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost
Grown by 7.22% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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